Two-thirds of retirees using new Willis Towers Watson tool reduce prescription drug costs

ARLINGTON, Va., Feb. 20, 2018 -- Nearly two-thirds of retirees who used Willis Towers Watson’s (NASDAQ:WLTW) pilot Prescription Coverage Check-Up tool during the 2017 Medicare open enrollment period saved money as a result of the tool’s recommendation to switch plans. The remaining one-third realized improved coverage or better drug formularies in their new plans and/or lower copays. Given the success of the pilot, Willis Towers Watson, a leading global advisory, broking and solutions company, will make the tool available to all retirees during the 2018 open enrollment season.

The Prescription Coverage Check-Up tool matches each retiree’s unique profile against available Part D Prescription Drug plans and in many cases recommends a new plan on the basis of total annual cost (including premiums, deductibles and out-of-pocket expenses) and coverage of the individual’s medications. With this information in hand, retirees can choose the plan that best meets their needs.

“Given the complexity of our health care system, it’s the path of least resistance for retirees to choose a prescription drug plan and to stay with it year after year even when their needs change,” said Ben Pajak, Individual Marketplace leader, Benefits Delivery and Administration for Willis Towers Watson. “This new tool empowers our participants to shop for coverage that fits their current health status and covers their current medications, which could be very different from when they originally chose a plan."

In one study from the American Economic Association, retirees paid greater attention to the premiums of prescription drug plans than the out-of-pocket expenses. As a result, study participants overspent by about 30% by choosing plans that left them with greater out-of-pocket costs, even if they had lower premiums.

To address this problem, the Prescription Coverage Check-Up tool guides retirees through an online portal to assess whether their plan offers the best available coverage for their current prescription needs. If it doesn’t, the tool helps retirees compare plans and switch to a lower-cost or more comprehensive alternative if one exists.

Willis Towers Watson’s Individual Marketplace offers a proven marketplace environment to help retirees transition from group plans to individual private Medicare plans. Retirees gain the peace of mind that comes from having benefits that meet their needs and budgets, while employers and plan sponsors are able to cap or reduce retiree medical costs and minimize the administrative burden of supporting this valued group.

About Willis Towers Watson

Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

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